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Alliance Bank Offers Shariah-Compliant Digital Financing For SMEs

Alliance Bank has introduced a new Shariah-compliant financing option for micro and small businesses.

This digital financing alternative is based on the Islamic concept of commodity murabahah (tawarruq) to offer a Digital SME financing solution for those operating in the halal industry or those who prefer an Islamic-permissible funding. The best part is small and medium enterprises (SMEs) to those operating micro businesses can apply online to obtain up to RM500,000 financing conveniently.

“We are now expanding to offer fully Shariah-compliant products as an additional option for business owners to meet their financing needs on top of the conventional digital SME loan. With its fast and simple digital application process, business owners can apply and track the application status anytime, anywhere.

“This year, we aim to provide RM200 million in digital SME financing to help business owners grow via our Digital SME solutions,” said Mr Kevin Shum, Senior Vice President and Head of Digital SME at Alliance Bank.

This digital Shariah-compliant financing option aims to enable business owners to improve their working capital with a preset ceiling profit rate for all financing structures. It offers a tenure of up to seven years with a variable rate from as low as base financing rate + 3.50% per annum (with the base financing rate currently at 5.92% per annum).

The bank also supports business owners via the BizSmart® Solution Portal which provides over 200 partners’ products and services. These value-added services help businesses to reach more customers, digitise and adopt sustainable practices at preferential rates by leveraging on the Bank’s strong SME network.

The bank will also be launching new products catering to micro and small businesses needs in the coming months. These include a micro convenience line of credit to help these businesses build their credit history in order to qualify for a bigger line of credit in the future.

For more information on Alliance Bank Digital SME solution, go to www.alliancebank.com.my/digitalsme.

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